BMD Crude Palm Oil Continuous Quarter Chart : Further rally is above 2828
Prices is in MYR
The above quarter chart is since 2002. The earlier breakdown point of 2757 formed in October 2011 is likely to offer resistance.
The last breakout point is at 2795 and the same may offer resistance. The high registered last month October 2016 was 2828.
Further rally can continue above 2828 closing.
A tale of contracting trend line to form triangle is being witnessed on long term quarter chart. Wave d could be in progress and if sustains above 2828.
On further rise and close above 2828 with bullish candle expect a rally towards the next major lower top which is at 3516. The falling trend line is around 3360.
Quarter chart weakness is below 2529.
Intra-quarter correction till 2529 is not violated could be looked at as an opportunity for accumulation.
On the weekly chart, breakout above 2676 has been witnessed and minor correction from current level of 2758 to 2658 could provide the support.
The minor correction can be for consolidation as long as 2529 is not violated by December 2016. But ultimately, a further breakout and close above 2828 is essential to see a rally towards 3360-3516.
The outlook will remain bullish for near term to short term if 2828 is crossed and 2529 is not violated in time to come.
Conclusion
Expect a near term possible breakout above 2828 to expect 3360 at least. Correction from current level to 2676-2658 could be accumulation with a medium term stop loss at 2529.
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(By Commoditiescontrol Bureau; +91-22-40015533)